@cryptadamist

If you thought #crypto was a scam.

Wait until you understand how #stablecoins work.

The idea of a stable coin is that it's always a fixed value (hence "stable").

Usually it's pegged against the US dollar.

Now the thing with stable coin is, you never know how much capital is there in stable coin. There is no central bank or register that is auditable. The stable coin may make claims and even may provide an audit. But there is no guarantee that any of it is true.

Also, any other currency, the trade determines value. Stable coin is pegged. So even if folks are dumping it like hot shit, it's always $1.

So you can set up a stable coin and funnel hundreds of millions out of it into fiat or other crypto and no one will be any wiser. You can check the #blockchain transactions, but usually only crypto nerds care about this. So you can maintain fraud for a long time.

#JeromePowell on #cryptocurrency

#Crypto is becoming more mainstream, & a #legal framework for #stablecoins is a good idea

Stablecoins could have wide appeal, & *should* have #ConsumerProtections!

There will be some loosening of rules to allow innovation, but it needs to be done in ways that does not make banks less safe & sound

#US #economy #Trump #policy #Fed #US #law #regulation #currency #inflation #tariffs #recession 🧵